Casinos in Singapore will soon encounter tighter regulations on conducting due diligence checks when accepting cash, as part of revised efforts to counter terrorism financing.
Due diligence checks will have to be undertaken when casinos accept a cash deposit of S$4,000 or more into a customer’s budget – down from the current brink of S$5,000.
“The adjustment is made so that Singapore casinos can sufficiently combat money laundering and terrorism financing and align our conditions with FATF standards,” the Gambling Regulatory Authority stated. FATF, the Financial Action Task Force, is a global money laundering and terrorism financing watchdog.
In December 2023, Resorts World Sentosa was penalised S$2.25 million for failing to do such reviews, the biggest penalty assessed by GRA on a casino operator. The latest threshold for due diligence checks was among the criteria laid out in Singapore’s updated National Strategy for Countering the Financing of Terrorism, jointly issued by the Ministry of Home Affairs, the Ministry of Finance and the Monetary Authority of Singapore. The updated declaration was publicised along with the Terrorism Financing National Risk Assessment. A recent report – the Money Laundering National Risk Assessment – said that the lowering of the threshold would align with the criteria of FATF.
The authorities stated that Singapore’s exposure as an international financial, business and transport hub may be manipulated to finance terrorism actions. As the global terrorism landscape develops, so will Singapore’s terrorism financing threats, hence the refreshed review and strategy, stated MHA, MOF and MAS. “Singapore has designed and implemented a systematic and thorough whole-of-government strategy to determine, monitor, and prevent terrorism financing risks,” the authorities stated.
The security, intelligence (including financial intelligence), law enforcement, supervisory, and regulatory agencies regularly scan for existing and appearing terrorism financing risks, reported by previous cases, international statements and feedback from foreign partners on risks. The authorities stated that they also actively confront and cooperate with the private sector and academia to improve their understanding of such risks.
In its review, Singapore has recognised its key terrorism financing threats: From terrorist companies such as ISIS, Al-Qaeda and Jemaah Islamiyah, as well as possible spillovers from the constant Israel-Hamas war and uncertainties in the Middle East. Self-radicalised individuals who are empathetic towards the cause of terrorist parties, in particular ISIS, are also a danger.
“Far-right extremism is also a growing safety concern in many nations,” the authorities observed.
“While it has not achieved significant traction in Southeast Asia, we cannot rule out that its anti-Islam and anti-immigration verbiage may resonate with some individuals.” The authorities stated that the updated Terrorism Financing National Risk Assessment has taken into account key expansions since its last incarnation in 2020. These include the growing global and regional terrorism landscape, the development of the digital economy and financial assistance in Asia, and terrorism financing risk typologies.
As in the earlier edition, the 2024 risk assessment followed that raising and moving funds for terrorists and terrorism movements overseas remains relevant in Singapore’s context. Self-radicalised individuals persist in posing the most salient terrorism financing danger to Singapore, the authorities said.
